!Required information[The following information applies to the questions displayed below.]Business Sim Corporation (BSC) entered into the following four transactions: (a) Issued 1,000 common shares to Kelly inexchange for $13,000. (b) Borrowed $34,000 from the bank, promising to repay it in two years. (c) Bought computerequipment by signing check number 101 in the amount of $39,000 and signing a promissory note for $5,000 due in sixmonths. This loan contains a clause ("covenant") that requires Business Sim Corporation (BSC) to maintain a ratio ofcurrent assets to current liabilities of at least 1.4. (d) Received $650 of supplies and promised to pay for them in 30days.3. Assuming BSC entered into no other activities during its first year ended September 30, prepare the company's classified balancesheet. Include a balance of zero in Retained Earnings.

Accounting equation: we know that assets = liability + capitalJournal Entry is the primary step in…

Answered: 3. Assuming BSC entered into no other…

3. Assuming BSC entered into no other activities during its first year ended September 30, prepare the company's classified balance sheet. Include a balance of zero in Retained Earnings.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Step 1: Introduction of accounting equation, journal entry, Balance sheet

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